Warm winter knocks pounds 92m off BG profits
Friday 15 May 1998
BG, which was split off from the British Gas trading arm Centrica a year ago, said operating profits dipped by 6 per cent to pounds 552m in the January- March period.
Transco, its pipeline arm, also felt the effects of the 13 per cent price cut imposed by the regulator Ofgas the previous autumn. This sliced pounds 140m from profits but BG said the reduction was partially offset by a pounds 45m fall in depreciation charges and pounds 57m of cost savings.
Staff levels at Transco fell by 432 to 15,452 at the end of March. Overall Transco's operating profits fell by pounds 62m to pounds 465m.
However, BG's exploration and production business made a strong contribution, posting a 57 per cent increase in operating profits to pounds 63m on the back of a 48 per cent rise in production volumes.
Despite a near 20 per cent fall in oil and gas prices on the previous year, operating profit per barrel was up by 6 per cent as BG's drive to cut production costs began to pay dividends.
The warm weather in February, when temperatures rose into the mid 60s Fahrenheit, took its toll on domestic gas consumption. But the actual volume of gas transported during the quarter was the same as 1997 because of the increased demand from large industrial users.
- 3 Alton Towers crash: Four seriously injured and 16 guests trapped as Smiler ride carriages collide
- 4 Ann Summers survey reveals the UK's favourite sex position
Man on naked bike ride gets ejected after becoming aroused
Caitlyn Jenner's mother Ester thought her daughter, formerly known as Bruce Jenner, had transitioned for money
Charles Kennedy 1959-2015: A gifted, compassionate politician whose career was cut short by the 'demon drink' - latest news
Alton Towers crash: Four seriously injured and 16 guests trapped as Smiler ride carriages collide
Charles Kennedy dead: A guy once asked the Lib Dem leader who his favourite Muppet was and his letter response was wonderful
Thousands of teenage girls enduring debilitating illnesses after routine school cancer vaccination
Migrants in Kos: Photos show real tragedy after Brits abroad complain of 'awkward' holidays
British tourists complain that impoverished boat migrants are making holidays 'awkward' in Kos
Michael Gove determined to scrap the Human Rights Act – even if Scotland retains it
Threat to scrap Human Rights Act could see UK follow Nazi example, warns UN official
Church of England 'one generation away from extinction' after dramatic loss of followers
iJobs Money & Business
£30000 - £35000 per annum: Recruitment Genius: The UK's fastest growing, multi...
£70000 - £90000 per annum: Recruitment Genius: A Financial Reporting Manager i...
£23000 - £25000 per annum: Recruitment Genius: They win lots of awards for the...
£13500 - £20000 per annum: Recruitment Genius: This nationwide enforcement com...